6 Insights Into Fuel-Loyalty Programs
By Samantha Oller on May 09, 2017BOSTON -- Fuel-loyalty programs have great potential to transform the commoditized gasoline business, but today they are falling short.
That’s the gulf of opportunity outlined by a recent survey of consumers’ fuel-loyalty program attitudes. In a February 2017 survey of nearly 11,000 users, Boston-based GasBuddy aimed to determine consumer preferences on loyalty programs. It found that a surprisingly high percentage did not participate in a fuel-loyalty program. Considering that these consumers are frequent fuel buyers and pay close attention to value, retailers have a big opportunity to win their business—if they get the details of their program right.
Here are six takeaways on consumer attitudes about fuel-loyalty programs from the exclusive GasBuddy-CSP Loyalty Report 2017, and the key ingredients of a successful offer ...
Considering that these consumers are frequent fuel buyers and pay close attention to value, retailers have a big opportunity to win their business through a loyalty program.
Other incentives that would encourage participation in a loyalty program include the availability of higher rewards for participation (63.9%), ability to use the card at more locations with more brands (53.5%), having access to more convenient locations (35.9%) and getting reminders to use the card (13.2%).
These include popular fuel-loyalty programs such as Speedway LLC’s Speedy Rewards. Grocery points-based programs such as Kroger Fuel Points were used by 56.0% of participants, and 21.5% used fuel-branded credit or debit cards such as those offered by major oils.
Nearly 89% of fuel-loyalty program members used the program at least monthly. The most popular frequency was weekly (55.1%), followed by monthly (33.5%) and every four months (5.8%).
This highlights the great opportunity to win consumers’ brand loyalty. Based on the survey results, GasBuddy analysts say four key elements of a successful program include:
Choice. For example, coalition-based loyalty programs provide consumers with greater choice in how and where they earn rewards. Choice can also be delivered by integrating the fuel-loyalty program to a payment card network.
Convenience. The ideal program would avoid special passcodes, key fobs or multiple procedures. Integrated, easy to use programs get the most attention.
Rewards. The program should give members plenty of opportunity to earn and use rewards, and surprise and delight them every now and then.
The most commonly used regional brand was Speedway's Speedy Rewards, with 28% of GasBuddy respondents, followed by Thorntons and Sheetz.
Among national brands, Shell was the most commonly used loyalty program, with 27.4% of GasBuddy respondents, followed by BP (12.6%) and ExxonMobil (6.6%).
For the complete GasBuddy-CSP Loyalty Report 2017, click here. And for more analysis, see the June issue of CSP magazine.